15:05 PM, 14th October 2022, About 2 years ago 17
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It’s not looking good for landlords, is it? What with rising interest rates, mortgage availability and the government handing bad tenants an opportunity to live rent-free in our homes!
That’s right. Liz ‘Blundertruss’ has struck again.
First, she raised my hopes that common sense will prevail on the proposed abolition of Section 21 when it appeared it would remain.
Then she confirmed in Parliament that the abolition plan will now go ahead.
I’m ticked off about this for a number of reasons (add your own in the comments below…):
Leaving aside the fact that there is no landlord organisation prepared to get their hands dirty and get involved in a real fight, we do need to organise ourselves and explain the law of unintended consequences.
Thankfully, Property118 had a story this week about the Labour Party in the Welsh Senedd refusing to introduce a rent freeze because – and I take my hat off to them for saying this – they have looked at what is happening in Scotland, and they fear the real prospect that landlords will simply pack up and leave the sector.
The unintended consequence of a rent freeze in Scotland is that landlords will simply become fed up because while we face growing costs, our income will not grow to meet them.
It then makes perfect sense for landlords to sell up and it’s unlikely they will sell to another landlord so, yet another house leaves the PRS.
We need to make clear as landlords that the reason why we need section 21 is to get rid of bad tenants. Those are tenants who don’t pay rent, who trash our property and who cause problems for neighbours.
We need to make clear as landlords that not having section 21 means not having confidence in getting our property back.
We also need to make clear that we aren’t all loaded to the gills with cash and many of us rely on our rental income, particularly if we have retired.
Renting a house out to families does not make us bad people, we are simply meeting a demand that countless governments have failed to meet over the years.
And this is why we get the politicians we deserve.
Not just the scheming double-crossing politicians who live for a sound bite and cannot plan more than a few months ahead because if they could, they would have created the social housing and council houses that are so desperately needed in this country.
While our politicians continue to fiddle, the private rental sector will continue to burn and fed-up landlords who are sick of bad tenants and terrible politicians will decide that with the increased legislation – with more to come – means it’s just not worth it anymore.
And like the Welsh Labour party, I can also guarantee that by the time the abolition of section 21 reaches the statute books, the private rental sector in England will be a shadow of what it is now – unless there is something to replace section 21 that brings landlords confidence in knowing they can gain possession when they need it.
There’s a balance to be made here to meet the needs of tenants and the needs of landlords but it’s only landlords who apparently have to pay the price.
Unfortunately, politicians will pay the price when S21 is abolished and eventually the penny drops with tenants that the lies and the legislation means they have literally nowhere else to live but I’m sure we will get the blame for that as well.
I really do believe now, if section 21 disappears we really are looking at the end of private landlords – certainly on the current scale.
Those that remain will be criminal landlords – because their tenants have nowhere else to go – and decent landlords who will be determined to offer quality homes for people who need them.
But no one wants to hear that most landlords are good people who genuinely care for the welfare of their tenants – and you won’t be seeing or hearing anything like that in the media.
Until next time,
The Landlord Crusader
Read last week’s article ‘Housing crisis? What housing crisis?’ – But don’t think that I am a Conservative voter/supporter
And the previous missive that provoked a lot of interesting debate about holding a Section 21 Day. Landlords – hold that thought!
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Sign Up8:33 AM, 15th October 2022, About 2 years ago
The penny will drop when it’s too late with these stupid headline hungry politicians. I have just re let one of my 2 bed houses over the years I have usually had 10 or 15 enquiries when advertised this time it was in excess of 80 I lost count last year it was letting for £1200 they now go for £1600 just simple supply and demand created by these stupid politicians. All this rouge landlord nonsense I have been a landlord for 20 year and I have never met a rouge landlord in my life. Of course there are some the worst housing is generally owned by the council or social housing. The problem with housing is governments never build enough consistently under building by hundreds of thousands every year the penny will drop eventually
Dave
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Sign Up8:45 AM, 15th October 2022, About 2 years ago
In wales section 21 is now 6 months notice
BUT, section 8 is still 2 months for anti social behaviour. The trouble is the police will not tell you why or even if they have attended my property due to the data protection act.
It is therefore its virtually impossible to put a compelling case before a judge....even if you can get a hearing!
So we are stuck with anti social tenants for 6 months with all the problems that causes.
Jerry stone
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Sign Up9:27 AM, 15th October 2022, About 2 years ago
Reply to the comment left by Michael Parsons at 15/10/2022 - 08:33
Quite agree.
The likes of Shelter have a lot to answer for.
I don’t see or hear Shelter screaming about the appalling standards of Local Authority and Housing Association housing stock.
Both Local Authorities where I live have failed housing standards in many ways.
You don’t here the Government or Shelter jumping up and down about them.
Kitcat
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Sign Up19:10 PM, 16th October 2022, About 2 years ago
I am sure we can invent a new type of agreement for people who want to live in our house(s). ~This will not be called a tenancy and will bypass the new laws. Remember what happened after the latest Employment Laws came in? Everybody was made 'self-employed' and worked for the firm as a sub-contractor. The employment market collapsed. I think a consortium for Landlords should work out a new deal. I would like to remind the law-makers that investment in property is the only way of investing that actually also provides somebody else with a home.
Gromit
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Sign Up19:51 PM, 16th October 2022, About 2 years ago
Reply to the comment left by Kitcat at 16/10/2022 - 19:10Our local almshouses do not have "tenants" they instead have "beneficiaries" and are not on an AST.
JamesB
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Sign Up22:23 PM, 16th October 2022, About 2 years ago
I have been sitting here this evening deliberating as to whether to issue a s21 tonight to a really good family that are perfect tenants and who I really like,.
I am put off partly because I very carefully issued a s21 in February to bad house destroying erratic paying tenants and this now needs to go to a hearing ("date tba"). I only lose £1600 a month, but I have checked and because I am a "landlord" that is obviously fine for my family.
Anyway the reason for the other one is because I need to get rid of my portfolio asap. After 26 years with a portfolio that I have poured by heart, soul, sweat, tears and time into I have had enough of the attacks and the planned attacks. The interest rates have finally killed it.
I'll explain. So the house, valued at £620000 currently, gets £2000pcm rent. That is £24000 a year in rent. If I sold it, after CGT I could clear around £500k off my total mortgages which are mostly about to come off long term fixes perfectly timed to jump to 6%. That is £30000 a year in interest I would therfore save.
Now if I could double the rent to £48000 a year, maybe I would make a SMALL profit:-
£48000 less 40% tax is £28800. Mortgage interest of £30000( but 20% relief so effectively £24000) leaving a £4800 profit. Well I say profit. I would still have to pay for insurances, boiler servicing, redecorating, you all know the usuals, and the upcoming £10k or whatever for epc C.
However, seeing as I can't double the rent from £2000pcm to £4000pcm I want out.
If other landlords are facing numbers like mine I think there will be no PRS to worry about, s21 or otherwise.
treeman
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Sign Up13:58 PM, 17th October 2022, About 2 years ago
Thanks, Crusader.
We as a Ex landlord need to have someone to say what needs to be said with some publicly as the others seem to be in charge with louder voices even though they do not know the landlord's problems or have any rentals at all and the NRLA and others are not doing anything that I can see, or very little.
But Im of the ones that have gone and left this game of "hit the landlord" with a stick anymore and it is a game but not on a level playing field.